From a letter of the 11th of May.—That Count de Vergennes informs the Chevalier de la Luzerne, that orders had been given by the King to have the loan of ten millions, on account of the United States, negotiated; that the Duc de la Vauguyon had received orders to propose it to the States of Holland, but met with insuperable difficulties, not only because the United States had no credit in Holland, but also because that Province was afraid of exposing itself; and that indeed granting a loan to the United States would be the same thing as countenancing their independence, which would be contrary to the obligations entered into by the republic with the neutral powers; that in order to remove this difficulty, the King had presented himself as a principal borrower, and as being alone accountable for the sums, which were to be furnished.

The Count adds, that he thinks these proceedings need no commentary; and that a mere exposition of them will be sufficient to excite the gratitude of the United States, and to engage them at last to make all the exertions in their power. The Count flatters himself, that the measures, which have been taken by his Court, will enable Congress to put their finances in the best order. That the Chevalier de la Luzerne had often written to him, that the most certain way to effectuate so happy an event would be, to put Congress for a while out of their distressing situation, and to enable them, by an external relief, to take internal measures without precipitation, and with solidity. That these considerations determined the King; and that from affection he has done more for his ally than mere prudence would, perhaps, have suggested to him. That the Council of the King have no doubt but this resolution will be productive of the good effects, which the Chevalier de la Luzerne had announced. The Count exhorts Congress to take hold of the present circumstances for the common advantage. He thinks it his duty freely and openly to declare, that the moment is come not to spend the time in expectation, deliberation, and useless exhortations; that though he would wish to avoid every disagreeable intimation, friendship and common interest oblige France to speak without reserve, and with perfect sincerity. That the King has done on this occasion what he can do no more; that Congress, if well informed of the situation of his Majesty's affairs, would be sensible that an exertion like the present cannot be repeated; and that the Court would feel the deepest concern, if it was under the disagreeable but indispensable necessity of refusing the demands of an ally, whose cause is now become its own.

From a letter of the 14th of May.—That Count de Vergennes observes, that Colonel Laurens had taken leave of the King, and that he ought to be satisfied with the success of his mission, although he had not obtained all that he demanded. That the Court of France hopes these demands will not be renewed; for how disagreeable soever to refuse allies whom the King sincerely loves, necessity would oblige him to reject pecuniary demands of any kind whatsoever.

From a letter of the 27th of July.—That the Chevalier de la Luzerne observed, that in March last he informed Congress, that the Court no longer pay the bills drawn upon France; upon which declaration he believes Congress stopped all drafts on Dr Franklin. That he informed the Court of that resolution of Congress. The Court in the meantime had resolved to grant a subsidy of six millions, to be employed in purchasing arms, ammunition, and clothing, to be sent from France to the United States; and the remainder of the sum to be employed in paying the drafts of Congress, or of any person they might appoint. Mr Morris being appointed Superintendent, the Minister according to his instructions authorised him to draw for half a million of livres, and informed M. Necker of this measure; accordingly funds were prepared for a regular payment. The Chevalier de la Luzerne had agreed with the Superintendent, that he might draw in the whole for a million and a half, including the half million above mentioned; of all which he had informed Count de Vergennes. Colonel Laurens being in the meanwhile arrived in France, it was found from his representation, that the mode of drawing was prejudicial to Congress, and that if the specie was imported, there would be no loss; and it was agreed, that he should bring over two millions and a half, out of the six millions, in specie. In consequence of this measure, Count de Vergennes acquaints the Chevalier de la Luzerne, that he hopes the Superintendent will not have drawn more than the before mentioned half million of livres. He wishes it the more earnestly, as bills for a greater sum would embarrass the finances of France in a great degree, the goods delivered to Colonel Laurens exceeding already the sum remaining out of the six millions, and the goods taken on board the Marquis de Lafayette being not yet replaced.

For a fuller explanation, the Chevalier de la Luzerne communicated to the Committee an account of the sums already furnished, and to be furnished from this time to the end of the present year for the service of the United States. That he had orders to take hold of this opportunity to repeat to Congress, that the King for the next year cannot continue any supplies to the United States, even of a much less nature. That it is time for them to relieve his Majesty from the heavy burdens in a war, which he had undertaken and carries on for their sakes. That the Count de Vergennes expects that Congress will not have drawn more bills of any kind after the 1st day of April last; that firmly relying on this, he had engaged the King to procure the necessary sums to answer the bills drawn before that period, and desired Dr Franklin to accept no more, if he had no other means of paying them; that this resolution could not be altered by any circumstances whatever.

The Count de Vergennes proceeds to state, how far the abuse of the King's benevolence had been carried, he supposes against the will and instructions and without the knowledge of Congress. That the bills drawn upon Mr Jay, Mr Adams, and Mr Laurens, had been sent back to Dr Franklin, that is, in effect to the Court of France. That the Republic of Holland had been unwilling to hear of any loan, even under the guarantee of the King, when it was known that the money was intended for the use of the United States; and that to remove this obstacle, as he had before observed, the King was induced to present himself as the principal borrower. The Court was still unacquainted with the effect of that proposition.

TO THE PRESIDENT OF CONGRESS.

Translation.

Philadelphia, September 24th, 1781.

Sir,